When we look at massive profit eruptions than we see that they are not coming out of thin air. It is just like an earthquake. Prior to the massive eruption, we see small eruptions and rumble.
If we look at the financial markets we see that the preasure is building up. Just like prior to magma eruptions.
If we look at the financial earthquakes we are building that we see more and more rumblings. The fiat currencies are all losing value and killing prosperity. The global debt level is increasing, governments are having more and more problems financing itself. The geopolitical tension is more and more increasing.
When we look at the global Gold purchases from the top 4 institutional buyers (Russia, India, China, and Turkey) than we see that purchases exceed annual production. What does this mean for the prices? Yes, they are going up!
The only method the producers of the precious metal are capable of keeping up with demand is by selling reserves they have. But this is something that will end. After all: at a certain moment there are no more reserves. What will happen when there is a physical shortage? Yes, prices will erupt!
Since 2001 all physical Gold owners are making profits. This is the case for the low inflation countries. Countries with central bank policies which are destructing the currencies of those countries over time. But the same is the case for those in the world who are less fortunate and had to deal with high inflation. Just think about the countries of Venezuela and Zimbabwe. Where even the official inflation goes over 100% a year.
The effect of the central bank policies to lower the interest rates has cut all economic sense out of the financial markets. Normally borrower and financier agree upon this transaction due to the risk/reward. Now there is no risk. What will happen when interest rates will return to normal?
One of the unheard risks is that banks are now addicted to artificial low-interest money. What will happen with banking and other financial institutions balance sheets when borrowers massively fail to keep up with payments? Forger 2007 and 2008. That was a rumble compared what we are up to.
Maybe you are not agreeing with the fact that you are living in an area where the financial blast is ready to ruin your wealth. All financial markets will take on really massive hits.
When this happens the Gold eruption is there and the only question we need to ask: are you in it and will you keep on building wealth or will you see all your wealth go up in smoke when all hell breaks loose?